Reply to: Frozen U.K. Home Market Leaves Buyers Wondering Where to Go

[scooterscot]

PS: You think this isn't happening right now!!

Oh to be a fly on the wall right now of Deutsche - everyone at the minute is trying to unload their next to worthless MBS products.

[scooterscot]

Thank god all that self cert mortgage nonsense ended in 2008. It took a proper global credit crunch to enable that. Bankers will dream up any nonsense to keep pumping up the house prices.

you blame the bankers.... but:

[fullyautomatix]

That's what I had - a self cert interest only mortgage. The advisor got me to take out the endowment (probably because he got a nice commission) although it wasn't a requirement at the time.

I got rid of it once the initial term was over and moved onto more normal mortgages.

The best one I had, on my last place before I sold up and moved to the big smoke, was with Barclays / Woolwich and was an offset base rate tracker. I see they're offering those again now.

Thank god all that self cert mortgage nonsense ended in 2008. It took a proper global credit crunch to enable that. Bankers will dream up any nonsense to keep pumping up the house prices.

[rootsnall]

With nowhere to live until then....

Not sure where he lives but there was a story yesterday of Airbnb pads flooding onto the rental market. I don't think finding a rental is a problem. Obviously a bit of a ballache short term but sitting pretty medium term.

[NotAllThere]

WTF was he doing splitting the chain into 2 bits.

I've owned four houses. On each occasion I moved into rented after sale. I've only been part of the chain, when I've been at the bottom end. It gives a bit of leverage, and a chance to get to know the new area.

Estate agents love chains because they get all their commission in one go. The shorter the chain, the better for the people buying/selling.

[ladymuck]

It's 17 years since I took out a mortgage. At the time, there were interest-only mortgages available where you didn't have to provide any means of paying off the capital (not even a crappy endowment). It was also at a time when "self-cert" was all the rage. Obviously, none of this ended well.

Clearly, the lending is a bit more responsible these days, although I shudder when I see on the likes of Location, Location how much people are borrowing.

That's what I had - a self cert interest only mortgage. The advisor got me to take out the endowment (probably because he got a nice commission) although it wasn't a requirement at the time.

I got rid of it once the initial term was over and moved onto more normal mortgages.

The best one I had, on my last place before I sold up and moved to the big smoke, was with Barclays / Woolwich and was an offset base rate tracker. I see they're offering those again now.

[Paralytic]

Clearly, the lending is a bit more responsible these days, although I shudder when I see on the likes of Location, Location how much people are borrowing.

The housing market is looking so bad, even the TV shows are being downsized!!!

[DealorNoDeal]

My first mortgage was interest only with an endowment policy. Those dropped out of favour pretty sharpish.

It's 17 years since I took out a mortgage. At the time, there were interest-only mortgages available where you didn't have to provide any means of paying off the capital (not even a crappy endowment). It was also at a time when "self-cert" was all the rage. Obviously, none of this ended well.

Clearly, the lending is a bit more responsible these days, although I shudder when I see on the likes of Location, Location how much people are borrowing.

[scooterscot]

UK housing market will crash within 6 months, so if cash rich hold tight till then.

I have no graphs readily available to illustrate this unfortunately.

The market will also be in a downtrend for 3-4 years.

[BrilloPad]

Surely he's pulled a blinder financially if that is the case !? Or am I missing something. He's got a pre recession price for his and will be able to pick up a distressed sale somewhere along the line.

With nowhere to live until then....

[MrMarkyMark]

UK housing market will crash within 6 months, so if cash rich hold tight till then.

I have no graphs readily available to illustrate this unfortunately.

[Whorty]

They are hypnotic.

They are something

[scooterscot]

Now here's someone who hasn't seen Scooter's graphs! They're great - one look and you'll be hooked on his expert advice

They are hypnotic.

[scooterscot]

Er, no they would not, just the interest component of the repayment increases (unless you're one of the very few who in on an interest-only deal).

A £200K outstandling mortgage with 20 years term remaining is around £965 per month at 1.5%, jumping to around £1,200 at 3.86%.

I'd caution anyone taking advice (or even notice) from some on these pages who state with certainty where the market is going. They have a 50% chance of getting it right.

Warns about taking advice and then gives it in the next sentence

As I understood it the 'doubling overnight' was figurative, and not taken to mean a doubling of mortgage payments with a doubling of interest rates, I'd hope that was obvious.

[ladymuck]

It shows how out of touch I am with the mortgage market. Last time I had one, interest-only was all the rage.

My first mortgage was interest only with an endowment policy. Those dropped out of favour pretty sharpish.